The dynamics of gas-I: Renewable is now a real threat

Apr 26:
For many years, natural gas was considered a natural ally to renewables in the transition to a low-carbon economy. 8This natural alliance between gas and renewables in the power generation sector is increasingly tenuous, as renewable cost declines continue at a rapid pace, and utility-scale renewables now regularly beat gas-fired projects in competitive power auctions in many parts of the world.8Even in the Middle East, natural gas demand can be much lower because renewable power is turning out to be cheaper. 8Flexible gas-fired power plants are uniquely well suited to balancing the daily intermittency of wind and solar PV in particular. 8But grid-scale battery storage, whose costs are also declining rapidly, and proliferating electric vehicles, whose batteries can also be used as a grid asset, can soon erode the cost advantages of gas-fired backup generators around the world.Click on Reports for more